Transportation Secretary Says GM Willingly Broke The Law - Fined $35 Million - Criminal Prosecution Possible

General Motors Co. agreed Friday to pay a record-setting $35 million civil penalty for delaying a recall of 2.6 million older cars for ignition switch defects linked to 13 deaths and 32 crashes and has agreed to a consent order to make significant and wide-ranging changes.

Federal officials offered a scathing review of the Detroit automaker’s approach to safety, citing a 2008 presentation that encouraged employees in communications to be factual but "not fantastic" in writing about problems, including not using the words “defect,” “dangerous” and “safety related.”

Transportation Secretary Anthony Foxx said GM knew ignition switch problems would turn off the airbag as early as November 2009.

“They had the information and told no one,” Foxx said. “Literally, silence can kill. What GM did was break the law.”

MorePower - 5/16/2014 9:01:49 PM

+1 Boost

Prosecution possible, but probably unlikely.

Auto_expert - 5/16/2014 11:26:34 PM

+3 Boost

The US lost over $10M on the bailout. Just need to fine them 300 more times to get it all back.

Why does the gov't get to be the bag man here? Shouldn't the victims' families get the money?

Oh, and this will be downplayed due to all the GM ad money and GM being associated with the prez. Don't want to make him look worse than he already looks.

skytop - 5/17/2014 8:08:49 PM

+2 Boost

$35 million dollar fine to GM is nothing but a minor slap on the face. It is meaningless. Hopefully, either a class action suit win or private lawsuits will teach GM a lesson in integrity and honesty which is sorely lacks.

610looper - 5/18/2014 7:43:37 PM

-3 Boost

Go after GM when you go after the Wallstreet criminals..